Maryviolet/iStock via Getty Images Overview When I previously covered SLR Investment ( SLRC ), I issued a hold rating due to the limited growth potential. Since then, the share price has declined by another 5.5% as the conditions of the debt market continue to deteriorate. SLRC reported its Q4 earnings, and I wanted to revisit the BDC's outlook. SLRC continues to offer some resilience when compare...
Maryviolet/iStock via Getty Images Overview When I previously covered SLR Investment ( SLRC ), I issued a hold rating due to the limited growth potential. Since then, the share price has declined by another 5.5% as the conditions of the debt market continue to deteriorate. SLRC reported its Q4 earnings, and I wanted to revisit the BDC's outlook. SLRC continues to offer some resilience when compared to the rest of the BDC sector, but I do believe there are some downside risks that investors should consider. SLRC has no investments in non-accrual status, but there aren't enough growth catalysts to look forward to. Looking at the performance over the last twelve months, SLRC's share price has declined by more than 15.5%. Even when including all distributions that were paid out to shareholders, the total return still sits at a loss of more than 8% over the same time frame. Due to the decline in share price, SLRC's starting dividend yield now sits around 11.4%. However, net investment income does not support the base distribution level, and management does not have any spillover income available. Therefore, a dividend cut may be needed at some point in 2026. Data by YCharts The share price has fallen into an attractive discount to NAV territory. However, I still don't think this is a good time to accumulate since earnings growth is poor. SLRC has struggled to allocate sufficient capital to new investments that can materialize into higher earnings over time. While interest rates remain high, I believe that the growth potential will continue to be suppressed through 2026. Despite the limited growth, management continues to demonstrate its ability to navigate headwinds. Q4 Earnings Revealed Limited Growth According to the most recent earnings release , SLRC has total investments at a fair value of $3.3B. Approximately 65% of the portfolio is allocated towards floating-rate debt securities, which means that SLRC is capable of collecting elevated interest income from its borr...
Chinese authorities have barred two Manus co-founders from leaving the country, the Financial Times reported , heightening scrutiny over Meta Platforms Inc. ’s 2025 acquisition of the fast-rising agentic AI startup for $2 billion. Xiao Hong and Ji Yichao were summoned this month to a meeting in Beijing with the National Development and Reform Commission, the country’s powerful economic planner, th...
Chinese authorities have barred two Manus co-founders from leaving the country, the Financial Times reported , heightening scrutiny over Meta Platforms Inc. ’s 2025 acquisition of the fast-rising agentic AI startup for $2 billion. Xiao Hong and Ji Yichao were summoned this month to a meeting in Beijing with the National Development and Reform Commission, the country’s powerful economic planner, the FT said, citing three people with knowledge of the matter. The pair, who are based in Singapore, were questioned about potential violations of foreign direct investment rules and then told they couldn’t leave China, the FT reported. Beijing has since January been investigating whether Meta’s takeover violated regulations, with potential national security implications. That review remains in its early stages and regulators might ultimately choose not to intervene. No charges have been brought and Manus is seeking legal help to resolve the matter, the FT said, citing a person with knowledge of the move. One extreme outcome would be to unwind the transaction, the newspaper said. A representative of Manus didn’t immediately respond to an email seeking comment. The case highlights Beijing’s broader concerns about the loss of technology to US buyers, particularly in strategic sectors such as AI. Read More: China Reviews Meta’s $2 Billion Deal to Buy AI Startup Manus Manus was founded in 2022 but quickly shifted its core team and headquarters to Singapore, a relocation that coincided with a financing round led by prominent Silicon Valley venture capital firm Benchmark Capital. That investment drew questions from US lawmakers. Meta announced the acquisition last December, touting Manus as a boost to its efforts with AI agents: autonomous systems that can carry out multi-step tasks without a human’s constant direction.
MarianVejcik/iStock via Getty Images The flash Eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth. Record cost surge March’s flash PMI survey data from S&P Global showed firms’ costs rising across the eurozone at the fastest rate for over three years amid the surge in energy prices and choking of supply chains resulting ...
MarianVejcik/iStock via Getty Images The flash Eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth. Record cost surge March’s flash PMI survey data from S&P Global showed firms’ costs rising across the eurozone at the fastest rate for over three years amid the surge in energy prices and choking of supply chains resulting from the war in the Middle East. Input prices increased at the fastest pace since February 2023, the rate of inflation accelerating to one of the greatest extents since data were first available in the late 1990s. The 10.6 point jump in the eurozone manufacturing input cost index was the largest on record, while the 5.2 point jump in the services input cost index was the largest on record, barring only the surge in costs seen in March 2022 during the pandemic. Supply Shock Supplier delays have meanwhile intensified to their highest since mid-2022, largely linked to shipping issues relating to the crisis in the Middle East. Although the delays are far less widespread than seen during the height of the pandemic, the supply chain disturbances have applied upward pressure to prices, which will only intensify further should the supply shock prove long-lasting, as will any adverse impact on production capacity arising from input shortages. The feed-through of higher costs to selling prices has been muted so far, according to the flash PMI for March, though the survey’s selling price gauge has nonetheless already risen to its highest since February 2024 and at a level indicative of consumer price inflation accelerating close to 3%. Growth close to stalling Output growth has meanwhile slowed to near-stagnation thanks to a slump in business confidence and deterioration of new orders. Falling to a ten-month low of 50.5 in March, down from 51.9 in February, the PMI’s composite output index has fallen to a level indicative of eurozone GDP growth slowing to a quarterly rate of just unde...